Need some information | FOREX Trading

[ALC]

Hi,

I've been very interested about Trading currencies / cryptocurrencies and FOREX for months, training with a demo account but not regularly but i'm curious about the subject.

I got some questions for those who are actually trading and are successful in this domain :

- To make good profit, do i need trading with hundreds to gets thousands or i must put thousands to get thousands ? (Making 40k per year would be a good thing and then growing slowly but surely the account)
- Can you do Forex Trading for a living ? I love the idea of working at home and make the same amount that i'm currently doing or even more.

-Do you got some recommandations before starting ? (Books, websites, stories...)


Thanks !

 

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[V8Bill]

You don't need hundreds or thousands, you need regular steady smart trades that return reasonable profits. If you can regularly make a 5-10% profit and you compound the trades you can build an enormous bank in a very short time. I'm a dabbler/day trader myself. I think it's a heap of fun.

Never trade with money that will make you cry (or complain) if you lose it though which is why you should start with just a small amount ($100 is plenty) and trade small portions until you can find a regular method that wins most of the time. Demo accounts are fine but they don't really prepare you for the emotion of real trading. Their only real use is to help you practice the mechanicals but once you know how to trade move to real money asap. Even if it's just a tiny amount like $20 and you trade .01 to start with. Real is always better.

Good luck - you might be a natural. If you can get the hang of it you won't find a way to make bigger money as fast than on the Forex markets. Beware. Good luck and put your $50,000 away! You won't need it. Forex is not a place for saved, borrowed or hard earned money. You can turn a small amount into a massive amount so focus on doing that. Never start with a large amount or it will turn into a small amount very quickly...ask me how I know.

Small trades compounded over time is good enough.

 

[amp0193]

@putinwork

 

[ALC]

You don't need hundreds or thousands, you need regular steady smart trades that return reasonable profits. If you can regularly make a 5-10% profit and you compound the trades you can build an enormous bank in a very short time. I'm a dabbler/day trader myself. I think it's a heap of fun.

Never trade with money that will make you cry (or complain) if you lose it though which is why you should start with just a small amount ($100 is plenty) and trade small portions until you can find a regular method that wins most of the time. Demo accounts are fine but they don't really prepare you for the emotion of real trading. Their only real use is to help you practice the mechanicals but once you know how to trade move to real money asap. Even if it's just a tiny amount like $20 and you trade .01 to start with. Real is always better.

Good luck - you might be a natural. If you can get the hang of it you won't find a way to make bigger money as fast than on the Forex markets. Beware. Good luck and put your $50,000 away! You won't need it. Forex is not a place for saved, borrowed or hard earned money. You can turn a small amount into a massive amount so focus on doing that. Never start with a large amount or it will turn into a small amount very quickly...ask me how I know.

Small trades compounded over time is good enough.

Thanks for the advices ! Do you think that doing it every night after finishing my job (actually it would be my own Coffee Shop) would be enough to make some money and learn or i need to day trade and be focus all day long to learn properly ?

I told you about 50k because on Youtube, they said that to be able to make good money you need to train (normal) but then after being familiar with trading, you need to trade good money to get a good profit.

I've always been interested by Trading but never been into it before, and now that i'm into that mindset of constant learning, i told myself that i need to go deep into Trading, that's why i'm asking if you got some Books recommandations, tips about which trade to look at a daily basis, which plateform/broker to use...

 

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[V8Bill]

Do you think that doing it every night after finishing my job would be enough to make some money and learn or i need to day trade and be focus all day long to learn properly ?

I'm working with a trader who does all his trading in just 1.5 hours a day at a specific time and only during that time. You don;t need to spend all day doing it. Once you have a method that works you can make all the money you need in just a few minutes or a few candles (if you chose larger time frames).

you need to trade good money to get a good profit

Rubbish. Untrue. People who use a large amount of money and only trade a small amount of it are just scared and have no idea what they're doing so they take minimal risk and make very little progress.

I would advise starting with a demo account and seeing if you can put together a string of winning trades. Until you can do that on a regular basis (without using stop losses) then you might be ready to trade with a small amount of money. I recommend no more than $100 and even then just trade micro lots ($2 per bet). $100 can become $100,000,000 in a very short time (relatively speaking) and if you lose a large bank you've only lost $100 (if you can keep a stable money mindset).

The trick is to find a lot size ratio that grows and shrinks with each winning or losing trade. That way as you win your trades get larger and as you lose the trades get smaller. This is the way to build a massive bank. Your aim is to build a large bank then remove yourself from the market A.S.A.P. and take that money and grow it in a more stable area (such as starting or growing a normal business).

You do not want to be doing this year after year as a stable source of income. You want to get good fast, grow fast and steady and then get out. That's my personal view anyway. I'm sure millions would disagree with me but I'm actually doing it whereas other are just playing with it without really believing they can do anything meaningful with it. It's a very serious deal and without doubt the fastest way to make a lot of money I've ever seen but make no mistake; it is gambling because you don't know the outcome before you put your money in.

Start small and compound your wins. Before long you'll be trading 100 lots and making a regular 5-20% per day (relatively simple once you find a method that works. Get your calculator out and you'll see how fast that sort of return will grow your bank and you'll be astonished.

Here's what can happen if you only achieve 15% per session (wins - losses) in just 7 months trading just a few minutes a day, 4 days a week (Mondays are usually pretty light and scattered so I don't trade Mondays).

Impressive and possible but you have to build discipline and have firm goals set with a strong vision of where your going and why. This'll keep you focussed. Some days you might lose a lot but that's ok, just pick up with the new balance and keep trying. Contrary to popular (often uninformed) belief 15% per session is more than possible and can be sustained over a reasonable period. Certainly enough to build a large bank as the final picture shows.

Good luck. It can be done but you have to like doing it and you have to know why and how to size your trades. As a guide; when you're consistent you can often trade 1 lot per $1,000 at 500:1 leverage which sadly you can't get in the U.S. because your government wants to protect you from yourself but for the rest of us out here it's the norm. As for which broker to use (they're actually called dealers not brokers) I can't advise unless you're an Australia in which case I'd suggest IC Markets. There are a few dealers who'll accept US traders and offer 500:1 leverage - look around and believe in yourself. You can do it.

 

[ALC]

I'm working with a trader who does all his trading in just 1.5 hours a day at a specific time and only during that time. You don;t need to spend all day doing it. Once you have a method that works you can make all the money you need in just a few minutes or a few candles (if you chose larger time frames).


Rubbish. Untrue. People who use a large amount of money and only trade a small amount of it are just scared and have no idea what they're doing so they take minimal risk and make very little progress.

I would advise starting with a demo account and seeing if you can put together a string of winning trades. Until you can do that on a regular basis (without using stop losses) then you might be ready to trade with a small amount of money. I recommend no more than $100 and even then just trade micro lots ($2 per bet). $100 can become $100,000,000 in a very short time (relatively speaking) and if you lose a large bank you've only lost $100 (if you can keep a stable money mindset).

The trick is to find a lot size ratio that grows and shrinks with each winning or losing trade. That way as you win your trades get larger and as you lose the trades get smaller. This is the way to build a massive bank. Your aim is to build a large bank then remove yourself from the market A.S.A.P. and take that money and grow it in a more stable area (such as starting or growing a normal business).

You do not want to be doing this year after year as a stable source of income. You want to get good fast, grow fast and steady and then get out. That's my personal view anyway. I'm sure millions would disagree with me but I'm actually doing it whereas other are just playing with it without really believing they can do anything meaningful with it. It's a very serious deal and without doubt the fastest way to make a lot of money I've ever seen but make no mistake; it is gambling because you don't know the outcome before you put your money in.

Start small and compound your wins. Before long you'll be trading 100 lots and making a regular 5-20% per day (relatively simple once you find a method that works. Get your calculator out and you'll see how fast that sort of return will grow your bank and you'll be astonished.

Here's what can happen if you only achieve 15% per session (wins - losses) in just 7 months trading just a few minutes a day, 4 days a week (Mondays are usually pretty light and scattered so I don't trade Mondays).

Impressive and possible but you have to build discipline and have firm goals set with a string vision of where your going and why. This'll keep you focussed. Some days you might lose a lot but that's ok, just pick up with the new balance and keep trying. Contrary to popular (often uninformed) belief 15% per session is more than possible and can be sustained over a reasonable period. Certainly enough to build a large bank as the final picture shows.

Good luck. It can be done but you have to like doing it and you have to know why and how to size your trades. As a guide; when you're consistent you can often trade 1 lot per $1,000 at 500:1 leverage which sadly you can't get in the U.S. because your government wants to protect you from yourself but for the rest of us out here it's the norm. As for which broker to use (they're actually called dealers not brokers) I can't advise unless you're an Australia in which case I'd suggest IC Markets. There are a few dealers who'll accept US traders and offer 500:1 leverage - look around and believe in yourself. You can do it.

This, indeed, motivate me a lot.
May i ask you when do your friend trade ? Which time of the day..

The thing is, i've been watching a lot of videos about Trading on Youtube, i got one interesting channel that explain very well in my opinion, The Duomo Initiative, (if ever you want take a look at it) and the more i look at his videos, the more i want to push through the thing, i really want to go all in but i don't know where to start or which stategies to use.


You're saying that your friend is trading for 2 hours per day, but how many trade is he closing during this time ?

For the dealers, i'm actually in France so i think it's different.

I agree with you about retiring myself from the Market, as i will soon sign a contract to open my very first business at 20yo, i want to grow that business idea that i had for too long in my mind. But if i can make a decent amount of money from the Market, i think it's more interesting to continue trading.

I heard about Metatrader for the plateform, do you recommend it ?

Thanks a lot for taking the time Bill.

 

[V8Bill]

Yes Metatrader. I use MT4 desktop and mobile. He only does 2 or 3 trades a day. Mostly near the end of the NY session.

If I was you I'd set up a demo account and just start trading with about $10,000. Try different lot sizes and different time frames and see what you make of it. Then go back and look at some videos and try what they say. I'm not really very comfortable discussing too much more about what my trader does as I don't want to turn this into a "how to forex" thread - at least not until I have some proven solid results. I have patchy personal results so I'm relying on the help of an experienced trader who has a direct interest in my success but that's just the way I'm chosing to do it. You might be a natural - you never know. Just dive in (to a demo account) and see what happens.

Learn technical analysis (how to read candles...etc) but try not to get too bogged down in indicators and lines everywhere. Try to learn pure price action (naked charts with no lines or anything). You might surprise yourself. I think it's the best show on earth but I love day trading and have done for years. It's certainly not for everyone and many find the need to discourage others because they haven't had success with it themselves so be vary smiley when someone tells you "it can't be done". It can. You just need a plan, some skill and experience, an understanding of dynamic lot sizing and compounding plus a plan for what to do with the money so you can get in, make your money as fast as possible and get out. Forex can be a grumpy dragon so it's best not to get too comfortable in it's cave.

 

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[Rabelo]

GREAT STUFF MAN

I'm working with a trader who does all his trading in just 1.5 hours a day at a specific time and only during that time. You don;t need to spend all day doing it. Once you have a method that works you can make all the money you need in just a few minutes or a few candles (if you chose larger time frames).


Rubbish. Untrue. People who use a large amount of money and only trade a small amount of it are just scared and have no idea what they're doing so they take minimal risk and make very little progress.

I would advise starting with a demo account and seeing if you can put together a string of winning trades. Until you can do that on a regular basis (without using stop losses) then you might be ready to trade with a small amount of money. I recommend no more than $100 and even then just trade micro lots ($2 per bet). $100 can become $100,000,000 in a very short time (relatively speaking) and if you lose a large bank you've only lost $100 (if you can keep a stable money mindset).

The trick is to find a lot size ratio that grows and shrinks with each winning or losing trade. That way as you win your trades get larger and as you lose the trades get smaller. This is the way to build a massive bank. Your aim is to build a large bank then remove yourself from the market A.S.A.P. and take that money and grow it in a more stable area (such as starting or growing a normal business).

You do not want to be doing this year after year as a stable source of income. You want to get good fast, grow fast and steady and then get out. That's my personal view anyway. I'm sure millions would disagree with me but I'm actually doing it whereas other are just playing with it without really believing they can do anything meaningful with it. It's a very serious deal and without doubt the fastest way to make a lot of money I've ever seen but make no mistake; it is gambling because you don't know the outcome before you put your money in.

Start small and compound your wins. Before long you'll be trading 100 lots and making a regular 5-20% per day (relatively simple once you find a method that works. Get your calculator out and you'll see how fast that sort of return will grow your bank and you'll be astonished.

Here's what can happen if you only achieve 15% per session (wins - losses) in just 7 months trading just a few minutes a day, 4 days a week (Mondays are usually pretty light and scattered so I don't trade Mondays).

Impressive and possible but you have to build discipline and have firm goals set with a string vision of where your going and why. This'll keep you focussed. Some days you might lose a lot but that's ok, just pick up with the new balance and keep trying. Contrary to popular (often uninformed) belief 15% per session is more than possible and can be sustained over a reasonable period. Certainly enough to build a large bank as the final picture shows.

Good luck. It can be done but you have to like doing it and you have to know why and how to size your trades. As a guide; when you're consistent you can often trade 1 lot per $1,000 at 500:1 leverage which sadly you can't get in the U.S. because your government wants to protect you from yourself but for the rest of us out here it's the norm. As for which broker to use (they're actually called dealers not brokers) I can't advise unless you're an Australia in which case I'd suggest IC Markets. There are a few dealers who'll accept US traders and offer 500:1 leverage - look around and believe in yourself. You can do it.

 

[fhs8]

Rubbish. Untrue. People who use a large amount of money and only trade a small amount of it are just scared and have no idea what they're doing so they take minimal risk and make very little progress.

I would advise starting with a demo account and seeing if you can put together a string of winning trades. Until you can do that on a regular basis (without using stop losses) then you might be ready to trade with a small amount of money. I recommend no more than $100 and even then just trade micro lots ($2 per bet). $100 can become $100,000,000 in a very short time (relatively speaking) and if you lose a large bank you've only lost $100 (if you can keep a stable money mindset).

The trick is to find a lot size ratio that grows and shrinks with each winning or losing trade. That way as you win your trades get larger and as you lose the trades get smaller. This is the way to build a massive bank. Your aim is to build a large bank then remove yourself from the market A.S.A.P. and take that money and grow it in a more stable area (such as starting or growing a normal business).

Horrible advice. Where's your 100 million? Odds of winning 100 times in a row = 1 / (2^100) in theory. You'd be much better off playing the lottery because it has a much higher standard deviation. People who trade Forex typically lose all of their money because they don't know math.

If you lose 15% of your balance you need a 17.64% gain to break even. The bigger the lot size the faster you'll be losing money. Below is a chart that randomly has -15% or +15% account performance which is realistic as to what you'll be getting without any trading fees/spread. My advice to OP is to avoid Forex daytrading or have a position larger than account balance because it theoretically has a negative rate of return.

 

[ALC]

Horrible advice. Where's your 100 million? Odds of winning 100 times in a row = 1 / (2^100) in theory. You'd be much better off playing the lottery because it has a much higher standard deviation. People who trade Forex typically lose all of their money because they don't know math.

If you lose 15% of your balance you need a 17.64% gain to break even. The bigger the lot size the faster you'll be losing money. Below is a chart that randomly has -15% or +15% account performance which is realistic as to what you'll be getting without any trading fees/spread. My advice to OP is to avoid Forex daytrading or have a position larger than account balance because it theoretically has a negative rate of return.

View attachment 16099 View attachment 16100

Horrible advice. Where's your 100 million? Odds of winning 100 times in a row = 1 / (2^100) in theory. You'd be much better off playing the lottery because it has a much higher standard deviation. People who trade Forex typically lose all of their money because they don't know math.

If you lose 15% of your balance you need a 17.64% gain to break even. The bigger the lot size the faster you'll be losing money. Below is a chart that randomly has -15% or +15% account performance which is realistic as to what you'll be getting without any trading fees/spread. My advice to OP is to avoid Forex daytrading or have a position larger than account balance because it theoretically has a negative rate of return.

View attachment 16099 View attachment 16100

Of course you won't be winning everytime, of course making 100 millions in a year is impossible in Trading when you're just getting started, but his point is that i need to learn the basics and then start to trade on a daily basis, learn how to react and control the emotion of winning/losing money.
Then go deeper and everytime, trying to be familiar with every technics and try to see where i fail, and try to avoid the same fail.

By the way, i will bet only 3% of my account in any trade.
Being supported by a confirmed and successful trader would be very nice, to be able to learn the very essential and master the craft and got someone to correct you when you're going wrong or entering a losing trade..

Hope i'm a natural ! If not i got work

 

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[Alexo]

I work for an Investment Company but our strategy is investing in stable long term quality companies and we don't trade often. I don't know of anyone that was able to make a living trading daily on small amounts of money.

I am not saying you can't do it but what you need is some insight or system you can trade off of and you will have to be able to cover the trading fees which is one of the downsides of trading constantly. There are some hedge funds that trade on algorithms like Renaissance Technologies where they try to identify events that make the market/stock move and then back test for significance. These algorithms make money on average and Renaissance's returns have been spectacular (30-40% compounded) for some years but I recently read that they have been struggling, probably due to low volatility in the market and algorithms slowly losing strength.

I personally would not trade daily because it is in my too hard basket but who knows, maybe you could find a system to make money.

 

[V8Bill]

Horrible advice.

Here they come - and they always come.

Where's your 100 million?

I don't need $100 million but what's your point? That's a silly question to ask and shows where your thinking level is. I've used this exact method to raise cash plenty of times.

Odds of winning 100 times in a row = 1 / (2^100) in theory.

There's the flaw in your rebuttal, you assumed the wrong thing. Quick to jump to advice you've assumed that one needs to win every time and in a row. Incorrect. If you read carefully I said "NET" which means after wins and losses. It's totally possible to end the day with a net win even though you had some losses along the way. Losses don't mean maths doesn't work, they just slow you down a bit. I've done this plenty of times and believe me, there are always losses. Totally irrelevant, it always and will always work exactly as I described.

You'd be much better off playing the lottery

Horrible advice.

People who trade Forex typically lose all of their money

Show me the studies and let's remove all the people who have a few trades, lose some money and run off crying and wiping their nose with their soiled underpants. Plenty of people make money on Forex. That's a silly thing to say and shows you're firing off cliches. No one who knows anything about real trading would say such a thing.

The bigger the lot size the faster you'll be losing money.

Again, please read my entire post. You missed a crucial part.

of course making 100 millions in a year is impossible

It's not impossible. It's very possible but do you need $100,000,000? What if you only wanted a few million to start a business with your own cash money or to bank and live on the interest?

By the way, i will bet only 3% of my account in any trade.

If you do that you'll just be joining the ranks of the scared traders and will never make a large bank and will will be stuck in "scared trader land" for years on end and end up a bitter twisted "stay away, no one ever wins at Forex, go play the lottery instead" advice giver. Trading just "3% of your money" means you're using scared money. Are you really that scared to lose $100?

Hope i'm a natural

You don't have to be a natural, you have to learn a craft. Learning how to make a few simple trades a day making 100-200 points (10-20 pips) each time NET is not a difficult thing to learn. It's not easy but it's not "give up" difficult. You just need a fresh perspective on what you're doing.

 

[V8Bill]

I work for an Investment Company but our strategy is investing in stable long term quality companies and we don't trade often.

Investment companies have to be super cautious because they're trading other people's money. That's understandable.

I don't know of anyone that was able to make a living trading daily on small amounts of money.

There are plenty. But the "trick" is to start small but compound your winnings so you don;t stay small and have specific goals to aim for and keep fear in check.

you will have to be able to cover the trading fees which is one of the downsides of trading constantly.

Not really, I don't look at or care about fees, I only look at profits. Without fees there's no mechanism to trade so I'm grateful for them. To me, if I made $15 (off $100) net of fees I made $15 and now have $115. The fees are largely irrelevant.

I personally would not trade daily because it is in my too hard basket

It's not easy - granted but it's definitely possible. Plenty of traders out there are pulling more than enough pips to make 10-$20 per day in a very short time. They're just applying the wrong money management and mindset to their skill. Waking up at 5:30am to drag yourself off to a dead job and eat shit all day - now THAT'S hard!

 

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[PersistentlyHungry]

@V8Bill you seem to know a lot about this subject, can you recommend any tutorials for beginners? Hoping to avoid false advice here.
Thanks!

 

[ALC]

@V8Bill Of course i don't need that amount of Money, but to be able to make some millions would be nice, even living with the interests from 5-10 millions would be VERY interesting, i'm actually a cars enthusiast since little, and my goal is to be able to put 200K on a car without putting myself into a certain risk.

For the 3%, could we agree that it's for the beginning ? I mean 100$ for the moment is nothing as i live at my parents house, but when i will start my own business in the 1-2 months from now, 100$ will be something. (renting an appartment, bills..)
And then after several wins, going for 15% to grow the account.

But of course, i'm not scared to lose money if it is for training purpose and trying to understand the market.

 

[MidwestLandlord]

@V8Bill you seem to know a lot about this subject, can you recommend any tutorials for beginners? Hoping to avoid false advice here.
Thanks!

I know you directed that @V8Bill , but this is what I used:

Learn Forex Trading With BabyPips.com

Go to the education tab and click on "school of pipsology"

Good stuff. Far more info than you need to start trading.

FOREX is a blast, but it's difficult. I FOREX trade honestly just for shits and giggles. Almost like a video game haha. I find options trading to be much easier to make consistent money with.

@V8Bill , would love to hear more of your thoughts on this if you care to and have the time. Which indicators you use, which pairs you trade, lot sizes, etc.

I trade single lots (10,000) and use support/resistance levels, candlesticks for strength of movement indication, I usually try to pick out definitive Elliot waves, and then just my own bias on whether to long or short it.

Overall I'm ahead about 1% for August lol

I typically only trade AUD/USD & EUR/USD (I'm short in both right now)

 

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[V8Bill]

@V8Bill you seem to know a lot about this subject, can you recommend any tutorials for beginners? Hoping to avoid false advice here.
Thanks!

To be honest I can't at the moment.

My advice (if I have any) is to find anyone who can show you how to find winning trades in the vicinity of about 100-200 points (10-20 pips) because there are plenty of those out there and apply your own dynamic lot sizing technique. Pick a generous lot sizing (I use 1 lot per k) and start with a small amount of money to start that won't hurt when you lose it while you're learning or getting started (and of course always start and practice on a demo account).

With dynamic lot sizing your trade sizes increase as you win and decrease as you lose. This is the way to build a very large bank very quickly if you're a consistent (overall) winner and to calm the trading down if you're a consistent overall loser.

In all my life I've never seen a faster way to make big money than to get good at Forex trading. It's the best show on earth in my opinion but you have to understand the risks and always, always, always start off with a small amount so if you blow your bank (which you will do plenty of times until you find your legs) it's no big deal.

Hardly anyone teaches it like this and it's the best hope you have as a day (or frequent) trader. Making 10-20 pips isn't hard. There are literally thousands of people out there who can show you how to do this. Dynamic lot sizing and compounding is the "trick" - if there is one.

 

[MidwestLandlord]

With dynamic lot sizing your trade sizes increase as you win and decrease as you lose.

In other words, you short additional lots if your bearish presumption proves correct, and long additional lots if your bullish assumption proves correct.

I've done that quite a bit.

The trick is to not try and time the top (if long) or bottom (if short) and take profits fast.

Likewise I reduce the lots if I'm wrong. It's harder to know when to pull the plug on a loss than it is to take a profit though.

 

[V8Bill]

@V8Bill Of course i don't need that amount of Money, but to be able to make some millions would be nice, even living with the interests from 5-10 millions would be VERY interesting, i'm actually a cars enthusiast since little, and my goal is to be able to put 200K on a car without putting myself into a certain risk.

For the 3%, could we agree that it's for the beginning ? I mean 100$ for the moment is nothing as i live at my parents house, but when i will start my own business in the 1-2 months from now, 100$ will be something. (renting an appartment, bills..)
And then after several wins, going for 15% to grow the account.

But of course, i'm not scared to lose money if it is for training purpose and trying to understand the market.

I know you directed that @V8Bill , but this is what I used:

Learn Forex Trading With BabyPips.com

Go to the education tab and click on "school of pipsology"

Good stuff. Far more info than you need to start trading.

FOREX is a blast, but it's difficult. I FOREX trade honestly just for shits and giggles. Almost like a video game haha. I find options trading to be much easier to make consistent money with.

@V8Bill , would love to hear more of your thoughts on this if you care to and have the time. Which indicators you use, which pairs you trade, lot sizes, etc.

I trade single lots (10,000) and use support/resistance levels, candlesticks for strength of movement indication, I usually try to pick out definitive Elliot waves, and then just my own bias on whether to long or short it.

Overall I'm ahead about 1% for August lol

I typically only trade AUD/USD & EUR/USD (I'm short in both right now)

@PersistentlyHungry There ya go. Follow @MidwestLandlord lead for lessons.

@MidwestLandlord ; It is a lot of fun and I know exactly what you mean. Like I said, I think it's the best show on earth. I also used to trade options almost exactly as @MJ DeMarco does now - selling Credit Put Spreads. I actually coached it for a while back from 2005-2012. It's a good safe method. Selling options is one of the best and safest money making methods I've come across.

Back to FX; Lately I've been trading naked (but fully clothed...lol oh the horror) charts. Indicators are tempting but can be sirenic in nature (they lure you onto the rocks). I'm generally focusing on M1 and M5 and I only trade EUR/USD and sometimes GBP/USD (M5). As for lot sizing, I use 1 lot per k (about 1/3 the account balance) which naturally compounds and cools as I win and lose.

 

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[ALC]

@PersistentlyHungry There ya go. Follow @MidwestLandlord lead for lessons.

@MidwestLandlord ; It is a lot of fun and I know exactly what you mean. Like I said, I think it's the best show on earth. I also used to trade options almost exactly as @MJ DeMarco does now - selling Credit Put Spreads. I actually coached it for a while back from 2005-2012. It's a good safe method. Selling options is one of the best and safest money making methods I've come across.

Back to FX; Lately I've been trading naked (but fully clothed...lol oh the horror) charts. Indicators are tempting but can be sirenic in nature (they lure you onto the rocks). I'm generally focusing on M1 and M5 and I only trade EUR/USD and sometimes GBP/USD (M5). As for lot sizing, I use 1 lot per k (about 1/3 the account balance) which naturally compounds and cools as I win and lose.

What about using support/resistance levels, candlesticks and crossovers ?
I mean that help a lot, but does not work everytime, unfortunately.

So with 100$ in the trade account, how many do you put in the trade ?

 

[V8Bill]

In other words, you short additional lots if your bearish presumption proves correct, and long additional lots if your bullish assumption proves correct.

I've done that quite a bit.

The trick is to not try and time the top (if long) or bottom (if short) and take profits fast.

Likewise I reduce the lots if I'm wrong. It's harder to know when to pull the plug on a loss than it is to take a profit though.

Here's how it works. Let's say I start off (or I'm up to $1,000). I'll trade 1 lot. If I have a win and I make (say) 10% I'll have a new balance of $1,100 so my next trade will be 1.1 lots. If I lose and my new balance is $900 I'll only trade .9 of a lot. To take it up into a larger scale... if I have $30,000 I'll trade 30 lots, if I win and my new balance is $35k my next trade will be 35 lots...etc This is the fastest way to manage the compounding effect and makes trade sizing super simple. It's not my invention but I always use it now after getting some incredible results. I like that it reduces your losses but compounds your wins. Trading (betting) 1/3 of your account isn't for ninnies though. Crying is not allowed. Straight faced trading is the order of the day. That's why I always suggest new traders start on demo until they can consistently pick winners and always start with $100 (0.1 lots) and compound from there.

 

[PersistentlyHungry]

@MidwestLandlord @V8Bill Thank you guys both, heading over to the courses right now.

 

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[MidwestLandlord]

Back to FX; Lately I've been trading naked (but fully clothed...lol oh the horror) charts. Indicators are tempting but can be sirenic in nature (they lure you onto the rocks). I'm generally focusing on M1 and M5 and I only trade EUR/USD and sometimes GBP/USD (M5). As for lot sizing, I use 1 lot per k (about 1/3 the account balance) which naturally compounds and cools as I win and lose.

Scalping on 1 and 5 minute time frames?

Intense!

So when you are not actively trading, you have no positions on at all, no?

And yeah, I end up trying to make the indicators match my bias haha

Here's how it works. Let's say I start off (or I'm up to $1,000). I'll trade 1 lot. If I have a win and I make (say) 10% I'll have a new balance of $1,100 so my next trade will be 1.1 lots. If I lose and my new balance is $900 I'll only trade .9 of a lot. To take it up into a larger scale... if I have $30,000 I'll trade 30 lots, if I win and my new balance is $35k my next trade will be 35 lots...etc This is the fastest way to manage the compounding effect and makes trade sizing super simple. It's not my invention but I always use it now after getting some incredible results. I like that it reduces your losses but compounds your wins.

I understand.

Using wins to make more wins, or to absorb losses and protect your initial investment.

Awesome, thanks. Gonna try it.

 

[MidwestLandlord]

@MidwestLandlord @V8Bill Thank you guys both, heading over to the courses right now.

Happy to help. Good luck. Start with a demo account for sure.

Nothing I said here constitutes investment advice though...mmmkay? (lol, but seriously)

I only dabble in FOREX like a hobby. Gives me my dopamine boost for the day because it's quite the rush and very challenging.

And I NEVER use money I would be butt hurt about losing.

 

[V8Bill]

What about using support/resistance levels, candlesticks and crossovers ?
I mean that help a lot, but does not work everytime, unfortunately.

So with 100$ in the trade account, how many do you put in the trade ?

I've never really got the hang of support and resistance above what was obvious. I've seen trades shoot straight past resistance and fall straight through support far too many times to take them seriously. Crossovers are always very tempting but only if you use them as a general trend to follow. If I was forced at gunpoint to reveal my crossovers I'd say my favourites would be 50sma, 20sma and 8ema. and everything has to agree for me to get on if following them. That means that all candles must be above all MAs and the 50 has to be pointing up for me to go long and vica versa. I call it "the party". Is everyon at the "party"? Are all candles above all MAs? Has everything crossed over and pointing up? If so, follow the trend for a short time and exit when a candle closes below the 8EMA. Entry is difficult but if I'm in I'll always close when a candle closes below the 8ema. That always signals the end of the trend.

I've attached my 50-20-8 template file for MT4 if that helps.

Here's an example of a "party" in full swing - pun intended. You can enter as soon as you're convinced the part is on and the exit is clearly marked when the first red candle closes below the blue line (8ema). If you think that's too sensitive a trigger you can wait for it to close below the 20sma but that's flirting with disaster. This particular trade example took only about 15 minutes to travel 50 points (5 pips) and would have returned about 5% on the whole account if you used the 1 lot per k sizing. Two or three of these per day is all you need. Easier said than done but far from impossible. They happen all day every day.

 

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[V8Bill]

Scalping on 1 and 5 minute time frames? Intense!

So when you are not actively trading, you have no positions on at all, no?

Scalping the M1 and M5 is a rush!

No, I never leave the computer when a trade is on. I went for a piss once, lost thousands. The opposite has also happened...lol but seriously, no, no unattended trades. That's kooky talk.

 

[V8Bill]

P.S. Did you spot the exit? Here it is...

A better exit would have been it started to get all spikey at the top but I've seen it do that then continue so I generally risk the very top for a confirmed exit candle even though this one was quite large so it wiped off a little too much profit but I never ignore the "exit on a wrong coloured candle which closes on the wrong side of the 8em (blue line).

 

[ALC]

@V8Bill Thanks Bill, that's helping me a lot!

Will give it a try and see what can be done

 

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[Baku85]

Hi Man,
actually I have some experience in this area.
about 8-9 month ago, I decided to give trading a chance. For some many years I had this feeling in my body, that trading, market is so exciting!
Ive started reading books, Murphys technical analysis bible, trader Vic, about candle sticks and some others. Many blogs, many articles, forums.

In daily job Im software developer, so of course I was doing automated bots, MT4 gives you feature that you can test your strategy over past time.
And guess what, 1-2% depending on currencys pairs - 1-2% yearly, just count how less it is then sub inflation.
But it was just technical analysis of course, of course there are better algorithms, look at current IT industry, machine learning everywhere!
If still some traders are doing money in scalping etc. its just a matter of time they wont.
Trading on M1-M5 - tell me what under it ? Are those real market situations moved to this graph ? Or its just some random stuff.
Dont believe in stories that you can learn 100.000.000 - come on ? Really ? If you can make on forex so much money, just using simple price action, candles , or SMA ? I will repeat my self - really ?
You know who earn money there ? People like - Warren Buffer, Gerge Soros.
But its not directly they can earn money there, by for example lowing down some currency, they can invest later in this country, as prices went down etc. Then they can earn 100.000.000.

If you dont belive me, and for what I encourage you is to check your strategy by your self , damn simple even if you can not code.
Print out for example 5h of M1/M5 EUR/USD. By using another piece of paper cover the graph, and move and move, look for signals, note it, note how much would you put there, then lost or won - its so simple, give for it even 10h , whole weekend even, but CHECK IT.
You will see then if your dreams can come true or not.

I dont want to say that oh this market is so bad etc. NO - Im still reading one blog, this guy is investing not in forex but in market exchange in one country, he is doing great great fundamental analysis, always checking his strategy etc. He is putting 10% of his wallet there, 15% there etc.
He is earning +/- 10% yearly, always putting his results in internet.

He lives from it.
Now ring bell in head, 10% yearly, well its nice, but ok to make living from it, how much money in investing wallet I need to have ? Plus how much money I need to have as savings, for living ?

But DONT read, hear people who are saying you can earn money there, and do it - NO. Its so easy to check, print graphs, cover and start trading on paper. Btw there are even softwares to make forex trading, maybe invest 50$ ( I don't remember how much it was really ) for such soft, and make there your trades on some past scenarions, train there. It will be X invested for checking, but better put 50$ and see you are losing in trading, then lost 500$ there and then say ah Im loosing...

EDIT:
Ok Ive found this software: Forex Tester - professional forex training software, simulator and backtester

well its much more than 50$ 299$.. Anyway I still believe its better to put money there , then lost much more. But this paper covering is free.

 

[V8Bill]

I'd love to respond to this but I'm not sure I understand what you're saying - sorry, perhaps slow down a bit and try to communicate in full sentences so we can understand your rant. I'll try a few points though...

If still some traders are doing money in scalping etc. its just a matter of time they wont.

Really? Based on what? Your feelings? The fact that you couldn't? There are thousands probably millions of traders all making money "scalping" or taking small bites at the market. To say they will all eventually lose is ludicrous and based on nothing.

Dont believe in stories that you can learn 100.000.000 - come on ? Really ?

Yes, really. Why not? Because you haven't done it? Because you've never seen anyone do it? Is that the extent of the evidence upon which you base your disbelief? A bit poor.

Also, you should read what I wrote a little more carefully and not just look at the one hundred million dollar example and balk insultingly just because it's a big number. There are just as many people who don't believe that making $1,000 is not possible. Just because someone thinks it's too good to be true doesn't make it false. It just means they have to lift what they think is too good. I've done plenty of impossible things in my 50 years on this earth and the only thing that made them impossible is that humans said they were "impossible". I did them anyway. There are plenty of 4 minute miles.

If people think the Forex market won't deliver you millions you're sadly mistaken. Sorry. It's not only possible it happens daily. Doubts don't make it untrue. I've personally made tens of thousands of dollars in just a few minutes and personally witnessed many multi million dollar (profit) trades. If it doesn't suit you that's fine but to discourage others just because you failed isn't very cool. Caution, warn, advise and tell us about your experiences - that's fine. But don't mock based solely on your experiences alone. It isn't helpful and really only achieves one thing.

better put 50$ and see you are losing in trading, then lost 500$ there and then say ah Im loosing...

I think I agree with this. I always advise to start with small amounts and compound to the larger amounts.